Four formal(izable) theories of the firm?
By: Robert Gibbons
Contributors: Massachusetts Institute of Technology. Dept. of Economics
Series: Working paper series / Massachusetts Institute of Technology, Dept. of Economics -- working paper 04-34; Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 04-34.
Publisher: Massachusetts Institute of Technology, Dept. of Economics
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Number of pages: 63
Other titles: 4 formal(izable) theories of the firm?; Four formalizable theories of the firm?; Four formal theories of the firm?
Description: In this essay, I define and compare elemental versions of four theories of the firm. These elemental theories are distilled from important contributions by Hart, Holmstrom, Klein, Williamson, and others. Although these contributions have been widely cited and much discussed, I have found it difficult to understand the commonalities, distinctions, and potential combinations of these seemingly familiar contributions. In this essay, therefore, I attempt to clarify these issues, in three steps: I begin with informal summaries of the theories, then turn to simple but formal statements of each elemental theory, and finally nest the four elemental theories in an integrative framework. Keywords: theory of the firm, vertical integration, transaction costs, rent seeking, property rights. JEL Classifications: D23, L14, L22.
Notes: "September 16, 2004."

Includes bibliographical references (p. 56-63).

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